Use of project mechanisms in 2013–2020

Operators in the EU emissions trading system (ETS) are
allowed to use the project mechanisms to fulfil their commitments. Project
credits (ERUs and CERs) earned in JI and CDM projects that comply with the
Kyoto Protocol can be used in the EU ETS, but the rules concerning their use
were changed in the third emissions trading period 2013–2020. Operators can use
project credits to meet their targets by exchanging them for emission
allowances (EUA) valid for the third emissions trading period.

The practical details of the exchange are specified at EU
level in the EU Registry Regulation. The maximum amount of project credits that
operators are entitled to use is examined as a whole over the period 2008–2020.
The maximum entitlements for the whole period are determined in accordance with
the EU Emissions Trading Directive (2003/87/EC). The Commission Regulation (EU)
No 1123/2013 (RICE Regulation) further specifies the maximum limits on the use
of credits in 2008–2020.

On 24 January 2014, the Finnish Energy Authority
issued a decision on installation-specific maximum limits on credit
entitlements. Limits for installations located in the Åland Islands are
determined by the Government of Åland, and the limits for aircraft operators
are set by the Finnish Transport Safety Agency Trafi.